Things to know about Debit Card Annual Maintenance Charges (AMC)

A Debit Card is a financial instrument that simplifies banking transactions. It's also works as an ATM card as it allows you to withdraw money from Automated Teller Machines (ATMs). But do you know that your bank charges an Annual Maintenance Charge (AMC) for the Debit Card it offers? In other words, you pay a Debit Card AMC for all the convenience and services that your Debit Card offers.

What is AMC for a Debit Card?

While a Debit Card helps you access funds easily at an ATM kiosk, the bank has to maintain elaborate technical infrastructure to ensure your Debit Card experience is smooth, reliable and secure. Debit Card AMC is levied to meet the cost borne by the service provider to offer these services and features. So, if you are a bank customer, you may find that your bank has charged a certain sum under the head Debit Card AMC

Understanding the significance of Debit Card AMC

Besides charging for Debit Card services and ATM vending AMC, your bank may also charge for the additional benefits and services your Debit Card is designed to offer. For example, some Debit Cards may offer insurance coverage, rebates on shopping from select outlets, exclusive dining benefits, and more. In such cases of value addition to your standard Debit Card benefits, the bank may charge additional Debit Card AMC.

How is Debit Card AMC Calculated?

Each bank / financial institution has its Debit Card plans, from standard to value-added Debit Cards. Debit Card AMC charges will differ for each type of plan. When applying for a Debit Card, you should check these details with your bank.

Let us consider different Axis Bank Debit Cards and their AMCs. The Visa Classic Debit Card is a basic option with an annual fee of ₹200, while the Platinum Debit Card offers more features and benefits for an annual fee of ₹500. The Burgundy World Debit Card is the most premium option, with an annual fee of ₹1,000 and benefits like airport lounge access and travel insurance.

All these Axis Bank cards allow you to withdraw cash from ATMs, make purchases and track your spending online, but with varying daily limits. The Visa Classic Debit Card has the lowest limits, while the Burgundy World Debit Card has the highest.

How to avoid AMC charges on ATM Cards?

While AMC Debit Card charges are usually minor, you may want to know how to avoid paying these charges. Here is how you can do it:

• Look for special offers: Banks often offer new customers zero AMC Debit Cards during special campaigns. If you find one such campaign, you can choose a Debit Card that doesn't charge AMC.
• Maintain minimum balance: Sometimes, Debit / ATM Card AMC charges are linked to maintaining a minimum balance in your account. If you maintain the minimum balance, you won't have to pay AMC.
• Use your bank's ATM: When you use another bank's ATM, you are charged a fee after a fixed number of transactions. Keeping this in mind, you should try to use your bank's ATM as much as possible.

Also Read: Virtual debit card: The future of card payments

FAQs

What are the charges for AMC?

Your bank fixes the AMC Debit Card charges, and they depend on the type of Debit Card you choose. When applying for a new Debit Card, you should ask the bank executive about AMC details.

Can ATM fees be refunded?

Yes, ATM fees charged during a statement cycle can be reimbursed depending on your bank's policy. Banks offering digital ATM cards sometimes may have a policy to credit ATM fees charged to your account for using other banks' ATMs.

Are AMC charges compulsory?

Usually, your bank will charge the Debit Card AMC per your chosen Debit Card plan. However, you can find a way around it by negotiating with the bank and choosing a card or plan to use your Debit Card without paying the AMC.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.